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Chapter 60 The Dollar Doomsday

"Andy Lau, I haven't seen you for a long time. I heard that you have been in Hong Kong for a while!" Lin Ke sat down and said to Chen Zhihua with a smile, "But it just happened that something is going to tell you today, it's good news, haha..."

Chen Zhihua was a little surprised. He didn't know what the good news Lin Ke was saying, but he was not in a hurry. After pouring a cup of tea for Wang Lei and Lin Ke, he waited for them to say it themselves.

After drinking a cup of tea, Wang Lei said: "During this period, we have purchased several pieces of land at high prices in Beijing, Tianjin, Dalian and other places, which has caused a sensation in the real estate industry there. Last Thursday, I received a call, guess what did you call?"

Chen Zhihua knew that Wang Lei and Lin Ke gradually moved the focus of the work of Wan Ke Group and Jintian Group to this Bohai Rim Plan. They bought several land kings at a very high price, one for the purpose of creating momentum, and the other for the purpose of being able to build large shopping malls and office buildings there in the future. Therefore, the plan has been going smoothly until now, and of course, it has also burned a lot of money.

At this time, Chen Zhihua noticed that Wang Lei and Lin Ke were looking at him with a smile, looking like they were eager to speak, and suddenly realized that they were deliberately trying to cheer up their appetite. He quickly smiled and said as if he wanted to beg for mercy: "You can say it out if you have something to do. Do you want to suffocate me to death?"

Wang Lei and Lin Ke looked at each other and finally said: "That phone call was invested by Lehman Brothers in the United States."

"American Lehman Brothers Investment?" Chen Zhihua was a little confused. You should know that the American Lehman Brothers Investment Bank is also one of the several large investment banks on Wall Street. I don't know why they suddenly called Wang Lei.

"Yes, the person who called was Yang Zhizhong, the president of Lehman Brothers Investment in China." Wang Lei smiled and continued: "He called and said that they were very interested in participating in our Bohai Rim plan and promised to invest 5 billion."

"Five billion?" Although Chen Zhihua had vaguely guessed something before, just hearing such a specific number at this time still made him speechless.

"Yes, they said they could take out 5 billion, and they only hoped to get back 20% of the profit when they returned." Wang Lei said a little excitedly.

Chen Zhihua understood that the entire Bohai Rim plan to invest 10 billion in five years, but now Lehman Brothers is willing to spend 5 billion, and only needs twenty returns to make profits in the future. It seems to be a very cost-effective transaction. However, in Chen Zhihua's opinion, there is no free lunch in this world, especially in the business world, so he asked again: "Don't you know what conditions there are for Lehman Brothers to invest?"

Wang Lei and Lin Ke gave Chen Zhihua a complimentary look, and Lin Ke continued: "But they hope that our Jintian Group and Wan Ke Group each can take out stocks of the same value as the 20% profit for them as payment!"

"That means they invested money to ask for stocks, don't have money?" Chen Zhihua asked thoughtfully: "It seems that their eyes are not on the Bohai Rim plan itself, but on the future development of the two companies, Wan Ke and Jintian."

Wang Lei and Lin Ke both nodded and said, "We thought about it before, and their suggestions are really attractive, so we all feel that we can get them involved."

Chen Zhihua thought about it again and said, "Although our plan has great development prospects, aren't Shen Zhenhua and Cheung Kong Group also developing this plan? Why don't Lehman Brothers talk to them about cooperation?"

"Brother, you have never really done real estate, you can't understand this!" Wang Lei smiled and said, "Now in terms of momentum, we are weaker than Cheung Kong and Shen Zhenhua. Even if Lehman Brothers spend more money, I'm afraid that Cheung Kong Group will not agree to their conditions. Besides, Cheung Kong is a company listed in Hong Kong, and the market is very large. Lehman will definitely get more benefits than investing in us."

In recent years, foreign funds have been looking to enter our domestic market, especially several investment banks in the United States, and have made a series of big moves in the mainland Chinese market. However, compared with Goldman Sachs, Morgan Stanley, Merrill Lynch, and Lehman Brothers seem to be much slower in entering the Chinese market. So far, its popularity in the Chinese market has lagged much behind the previous three investment banks. After hearing Wang Lei's words, Chen Zhihua knew that Lehman Brothers had such a big move, probably because he wanted to use this investment to enter the Chinese real estate market, so he nodded and said, "Since that's the case, I think this cooperation is OK, but I have to talk to them in detail and try to compress their conditions."

Wang Lei nodded and said, "This is of course." He paused slightly, and he smiled and said, "I heard that the exchange rate of the US dollar has fallen recently. When they invested such a large amount of money in this time, I am afraid that they will lose a lot in the exchange rate!"

When Chen Zhihua heard this, he couldn't help but smile. Although Wang Lei is the boss of the Chinese real estate industry, he doesn't know much about financial investment. He said: "Brother Wang may not know that it is because of the weakening of the US dollar recently that these investment banks are so anxious to invest in large quantities!"

"What do you mean?" Wang Lei was a little surprised and frowned and said, "When the US dollar is weak, will you lose a lot?"

"Brother Wang may not understand that the depreciation of the US dollar has been the general trend. In recent times, the Federal Reserve has raised interest rates by 5%, but the difference between this interest value and the euro is not large, and it is impossible to alleviate the market expectations of the whereabouts of the US dollar, so the US dollar will continue to decline. In this case, the US dollar will be greatly oversupply, and our RMB will have a lot of room for appreciation, so these foreign investment banks have to find ways to take out money and invest it into China's real estate market. When the exchange rates between the US dollar and the RMB will change even more in the future, this part of the money will become an additional income."

After listening to Chen Zhihua's words, although Wang Lei did not understand the connection and changes in the middle, he also understood that the money invested by Lehman Brothers would receive greater returns in the future. He couldn't help but smile with emotion: "It turns out that there are so many ways to make money in this world. It seems that you who understand finance are smarter than us!"

Chen Zhihua smiled slightly. In fact, he has not made it clear. In recent times, there is a saying that has been widely circulated in the financial community in the world, that is, the doomsday theory of the US dollar. Because the US double deficit, that is, the fiscal deficit and trade deficit, has accumulated to trillions of dollars, and according to the current US economic structure, such double deficits continue to expand, so the US dollar will not flow back to their domestic countries when it flows out internationally, which has caused the US dollar to be over-in-the-international situation. This situation of double deficits and US dollar surplus must have a major adjustment. No matter what the adjustment is, it will be disastrous for countries, enterprises, and institutions that own the US dollar. Therefore, many people realize this and are preparing to deal with the occurrence of such changes.

Sometimes things are very strange, just like some people think that China is a threat, so they deal with China and attack China, which leads to China's resistance, which leads to confrontation between China and the United States, so China's "threat" theory is naturally fulfilled. Here, people think that the US dollar will depreciate, and as a result, everyone sells it, and the United States will really fall sharply.

There are two ways to put it in front of Americans now. One is to have a drastic depreciation, which is the so-called hard landing, and the other is to let the US dollar fall slowly and finally reach a equilibrium state to complete the adjustment of the double red.

The United States and Western countries have realized this and have long begun to promote soft landings. During the soft landing process, many crises can be transferred to others. Whoever has the best means, who has less losses, or even scrambles to fish in the water, can still make profits. For example, pushing the price of metal raw materials such as oil, precious metals, and even copper to soar, but then using the imperial economic comments, gunmen advocated that the price increase in these things is caused by the surge in demand from developing countries such as China, India, and Brazil. In fact, this is not the case.

To use a very simple example, oil prices have been rising recently. Some people may say that there are more cars in China and more demand, which leads to such a result. But what these people cannot see is that if the changes occur only in the supply and demand relationship, even if the prices rise, they will not soar. You should know that all the oil sand resources in Albert, Canada alone are enough to maintain the current level of oil use in the world for a hundred years, let alone the Arab region.

Selling the US dollar has become a common perception of most people, and this selling starts with buying other currencies. Central banks of various countries are smartly sniping the US dollar to prevent the country's currencies from appreciating significantly and affecting their own exports. For example, China is like this, delaying the appreciation of its own currency.

Under this situation, the remaining US dollar had to look for other exports and choose substances that can be quickly cashed out, that is, this kind of thing is a commodity similar to currency.

Oil, gold, and various futures first appeared in front of everyone. In recent years, the sharp rise in prices of oil, gold, copper futures, etc. is an important feature of the US dollar being sold. In addition, more institutions, enterprises and individuals holding US dollars have turned their attention to countries like China with great appreciation potential. As long as the funds can be invested here, in one or two years, it can not only offset the losses caused by the depreciation of the US dollar, but also follow the appreciation of the currencies of these countries. The difference is very big.

It is precisely because of the opportunity that the US dollar will depreciate that Chen Zhihua entered the Chinese stock market before. Foreign capital is constantly entering the Chinese stock market. It can be seen from the recent surge in the stock indexes of Shenzhen and Shanghai stock markets. However, this seems not enough. After all, China's stock market has been sluggish for several years. Just relying on the current state of the Chinese stock market, it is not enough to support the listing of several state-owned banks in China. Therefore, the government should have other rear contacts. What Chen Zhihua is waiting for is the government's "low back contact".

Chen Zhihua discussed with Wang Lei and Lin Ke for a while, and the three of them left the teahouse and dispersed.

As soon as he returned to Hong Kong, Chen Zhihua immediately received a call from Zhou Xiangjun, asking him to return to Yuanheng's headquarters quickly. It is said that there is some unfavorable news in the copper futures market.

Chen Zhihua hurried back to Yuanheng. As soon as he entered the office, Zhou Xiangjun came over and said to him: "We just received news from London that the Chinese government is going to short copper."

"Short copper futures?" Chen Zhihua was a little confused. The current upward trend of the copper market is something that everyone can see. I don't know why the Chinese government chose to enter the market at this time, and also chose to short. "What is the detailed situation?"

"Today I got news from our trader that a trader named Liu Qibing suddenly ate a short order worth nearly $10 million. Under his guidance, LME's copper price today was lower than the opening price and closed with a market value of six dollars." Zhou Xiangjun thought for a while and said: "If nothing is wrong, this Liu Qibing should be that person!"

In so many days, copper futures has closed at a lower price than the opening price for the first time. Chen Zhihua thought for a while and said, "Although Liu Qibing represents the China National Reserve Bureau, the current copper market is not something that human resources can reverse. Let's take a look!"

"Do we need to prepare first?" Zhou Xiangjun thought for a while and said, "Liu Qibing is now the director of the Export Department of the State-owned Assets Center. He has full authority to deal with state-owned assets transactions. If the government really intends to suppress the copper price, then we should be careful."

Chen Zhihua thought about it and thought that the copper market would rise no matter what, but at the same time, he also felt that Zhou Xiangjun was still cautious in his consideration. He nodded and said, "Okay, let's put it a little bit and see the situation in a few days!" After a slight pause, Chen Zhihua shook his head and sighed, "But now all speculators are staring at the copper futures market. Unless the government does not react, once it reacts, it must fight a tough battle. After all, long speculators need a short opponent to support it. It depends on who will be the sucker at this moment."

Zhou Xiangjun also roughly understood the current trend of the copper futures market. After thinking about it, he said, "I don't know what the government plans, how could it short the market at this time?" When he spoke, Zhou Xiangjun seemed a little melancholy. After all, in the hearts of every Chinese, he does not want the country to suffer losses...

The next day, news that the Chinese government was preparing to suppress copper prices spread throughout the market, and many peripheral speculators followed suit, and the copper futures price once again closed below the opening price of US$10.

Although it only fell by sixteen dollars in two days, Chen Zhihua did not care about the discount, but it suddenly decreased by more than 400,000 US dollars, or more than three million yuan. The copper-wave theory, which was temporarily lost, suddenly became active again. Those critics who had previously held the copper-wave theory began to hype their "foresight", and it seemed that the decline in copper futures was a foregone conclusion.

This situation suddenly occurred, and the long camp had no voice at all. Everyone was quietly watching the development of the situation. No one knew what the Chinese government wanted to do. Whether it was to give the market a signal that the copper price would not grow too fast, or did it really want to completely suppress the market. If it was just a signal, after all, the long camp only costs money and did not want to fight with a behemoth like the Chinese government. However, if it was the latter, then the long camp would be necessary to unite.

In the next week, the price of copper futures was going down. Everyone in the industry knew that this was the impact of the Chinese government's entry into the market for copper futures, and the second was the stopping of long speculators, so the price of copper slowly fell. However, not everyone has this understanding, at least Li Zining, who is far away in Hong Kong, doesn't know it.

Since he made a plan with Liu Qibing that day, Li Zining quickly found Ye Zhengyu. He had already checked the "grudges" between Ye Zhengyu and Chen Zhihua. Of course, he wanted to try his best to persuade Ye Zhengyu to join their plan with his own words. Ye Zhengyu actually did not have much resentment towards Chen Zhihua, but because Chen Zhihua refused his request that day, he was angry. Li Zining happened to get this opportunity. Ye Zhengyu also felt that it was nothing wrong to give Chen Zhihua some small losses appropriately, so he agreed to join Li Zining and Liu Qibing's plan, but he did not dare to let his father know about this matter.

While Liu Qibing suddenly used the funds from the State-owned Assets Center and suddenly ate a large number of short orders, they also used the funds at hand to ate a short order. If we talk about futures investment, Li Zining is of course far inferior to Ye Zhengyu. Ye Zhengyu only invested about 50 million yuan at the beginning to test it, but Li Zining threw 200 million in one go.

However, it was precisely because of the 200 million yuan that the decline in copper in one week really made Li Zining make a lot of money on the books, which has exceeded 5 million Hong Kong dollars. He never thought that it would be so easy to make money in the futures market, but he made so much in one week. This made him a little regretful that he had not invested all his funds in one go. Otherwise, this time he would definitely be able to make himself more than 20 million.
Chapter completed!
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